All Forum Posts by: Mo Karim

Jenny,

I invest in some C class properties and from my experience, C class tenants tend to be more management intensive. I think if your deal makes sense and you're aware of the challenges then go for it. You'll learn a lot from doing a deal. The only advise I adhere to is go for a bigger deal rather than small one. They're the same amount of work so you may as well go big. Midwest is a great place to start!

Hi all,

I saw the need to have muItiple sources of income after Covid hit and saw mass layoffs around the country. I also remember what happened in 2008. I really wanted to control my future and not reply on anyone else. It took me 6-12 months to get my first deal done. I consumed a lot of books (most from Bigger Pockets), podcasts and blogs on investing. My first deal was a 7plex and did my second deal later on in the same year. Then got my third a few months after the second deal. I live in Texas but invest out of state. I love investing in real estate and I'm so glad I started. If I can help in anyway please let me know. Would love to pay it forward! 

@Lee Ripma thank you! That article along with the w2 article was a big help. 

@Christopher Smith I do agree with you. I forgot to mention I have w2 income and I can use accelerated depreciation to offset that income. In this case, the juice maybe worth the squeeze. I’ll still consult with my accountant.

@Melissa Robbins - I just bought a 4plex in that area and wood rot appears to be the problem for me as well. I think KC area gets a decent amount of rain. I did know about the problem and have a budget to address exterior reno. I went with Mission Painting after getting several bids from 9k to 25k. Mission is not the cheapest but also not the most expensive. Try getting a quote from them. Good luck!

Hi all,

I wanted get some opinion from BP nation on a property I bought in Jan this year to see if it makes sense to do a cost segregation study and accelerate depreciation on it. Here are the numbers:

315k - land value around 60-80k (Property now worth approximately 400-425k bc raised rents by 1k/month, slight improvements, professionally managed, etc.)

7 units - 100% leased
15 year fixed at 4.75%

Cash flowing around 1k/month (even with 15 year note)

Hold for 3-5 years then 1031 out to bigger property

I feel like cost seg may not make sense? In which case, a cash out refi might be better?

Please let me know your thoughts!

I had to pay about $2400 for a 7plex in Oklahoma. I wasn’t happy about it but had to bite the bullet as other appraisal bids were coming up even higher from lender.

@Jordan Sand it’s a 4plex for now. Going to expand in the area.

@Caleb Brown yes please!

Hi BP nation,

Can you recommend some good property managers in Kansas City area (Missouri side)? I’m looking at multi family properties in Blue Springs, Lee’s Summit, etc.

Also, what rates and charges are you typically seeing from PMs? From initial research, looks like most charge a lot.

Thanks,

Mo Karim